Partnering for Perfection: An Economics Perspective on B2B Electronic Market Strategic Alliances

Partnering for Perfection: An Economics Perspective on B2B Electronic Market Strategic Alliances

Qizhi Dai (Drexel University, USA) and Robert J. Kauffman (University of Minnesota, USA)
Copyright: © 2005 |Pages: 37
DOI: 10.4018/978-1-59140-444-6.ch003
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Abstract

New technological innovations have made it possible for new intermediaries to create value in business processes that involve the procurement of manufacturing and services supplies. Associated with these innovations is the emergence of business-to-business (B2B) electronic markets. These act as digital intermediaries that aim to reduce the transaction costs and mitigate the risks inherent in procurement. They improve buyers’ capabilities to search for attractive prices and also serve to increase the liquidity of sellers’ products. In this chapter, the authors explore the evolution of B2B e-market firms in terms of the strategies they employ to “perfect” their value propositions and business processes for the firms. This is a critical aspect of their attractiveness as business partners for the buyers and sellers that participate in their electronic marketplaces. The key theoretical perspectives of this work are adapted from economics and strategic management. They enable the authors to construct a “partnering for perfection” theory of strategic alliances in e-procurement markets. This perspective is captured in a series of inquiries about “why” and “when” B2B e-markets are observed to form alliances. The authors carry out an innovative econometric analysis that delivers empirical results to show the efficacy of the theory in interpreting real world events. The chapter concludes with a discussion of the implications of this work in academic and managerial terms.

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Dedication
Table of Contents
Acknowledgments
Kerem Tomak
Chapter 1
David Dranove, Neil Gandal
In April 1997 a consortium of hardware manufacturers and movie studios launched the DVD format. By that fall, electronics retailing giant Circuit... Sample PDF
Surviving a Standards War: Lessons Learned from the Life and Death of DIVX
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Chapter 2
Kevin Zhu
This chapter explores the private and social desirability of information transparency of a business-to-business (B2B) electronic market that... Sample PDF
Information Transparency Hypothesis: Economic Implications of Information Transparency in Electronic Markets
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Chapter 3
Qizhi Dai, Robert J. Kauffman
New technological innovations have made it possible for new intermediaries to create value in business processes that involve the procurement of... Sample PDF
Partnering for Perfection: An Economics Perspective on B2B Electronic Market Strategic Alliances
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Chapter 4
Nelson Granados, Alok Gupta, Robert J. Kauffman
Internet-based selling offers firms many new opportunities regarding the strategies for design of mechanisms to support consumer transactions. This... Sample PDF
Transparency Strategy in Internet-Based Selling
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Chapter 5
Kexi Zhao, Michael J. Shaw, Mu Xia, Chandrasekar Subramaniam
This chapter analyzes the structural dynamics of multilateral business-to-business (B2B) relationships based on game theoretical approach. It... Sample PDF
Structure Evolution of B2B Enterprise Networks
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Chapter 6
Xiaorui Hu, Zhangxi Lin, Han Zhang
Escrow is an emerging trust service in online consumer-to-consumer auction markets in preventing Internet fraud. This chapter studies the effect of... Sample PDF
Perceived Risk and Escrow Adoption in Online Consumer-to-Consumer Auction Markets: An Economic Analysis
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Chapter 7
Pekka Tsupari, Petri Rouvinen
This chapter studies the joint effects of inter-firm collaboration and electronic business on firm profitability primarily in Finnish manufacturing.... Sample PDF
Inter-Firm Collaboration and Electronic Business: Effects on Profitability in Finland
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Chapter 8
Ranjan Dutta, Jonathan J. Koehler
In this chapter, we draw on the behavioral economics literature to identify the conditions under which consumers would prefer one of three pricing... Sample PDF
Pay Now or Later? The Impact of Temporal Separation of Payments and Consumption on Consumer Payment Preferences
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Chapter 9
Kerem Tomak
In this chapter we attempt to build a bridge between mobile commerce and the emerging field of behavioral economics. We first provide examples from... Sample PDF
Economics of Immediate Gratification in Mobile Commerce
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About the Authors